FRANKFURT (MNI) – Europe is considering a precautionary credit line
for Spain in case the country cannot raise the funds needed to stabilize
its banking sector, German newspaper Die Welt reported Tuesday, citing
unspecified sources.
The precautionary funds would come from the Eurozone’s EFSF bailout
facility and could be made available before Greece’s elections on June
17, and ahead of a report on the condition of Spain’s banking sector.
The credit line could be accessed later, in the event of greater
turmoil and only if the Spanish government is unable to raise enough
funds to rescue the banking sector on its own, Die Welt reported in a
preview of its Wednesday edition.
The newspaper said the precautionary credit line might be seen as a
compromise between Madrid — which has rejected seeking a full bailout
from the EU — and Berlin, which has rejected using the EFSF to directly
aid Spain’s banks.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MGX$$$,M$S$$$,M$$CR$]